Can a Minor File Their Own Tax Return?

Minors, like adults, can have tax obligations based on their income. Understanding these requirements is important for young individuals and their families. While the concept of a minor filing taxes might seem unusual, certain income levels and types trigger a filing responsibility. This guide provides an overview of when and how a minor might need to file a tax return.

When a Minor Must File

A minor’s obligation to file a federal income tax return depends on their income level and the type of income received. The Internal Revenue Service (IRS) distinguishes between earned income, such as wages from a job, and unearned income, which includes investment income like interest and dividends. For the 2024 tax year, a minor with earned income exceeding $14,600 must file a return.

The filing requirements are lower for unearned income. A minor must file if their unearned income, such as from interest or dividends, exceeds $1,300 for the 2024 tax year. If a minor has both earned and unearned income, the filing threshold becomes more complex. A return is required if the unearned income is more than $450 and the total gross income (earned plus unearned) exceeds the larger of $1,300 or the sum of earned income plus $450.

If federal income tax was withheld from a minor’s paychecks, filing a return is the only way to claim a refund of those withheld taxes. This often applies to minors working part-time jobs who may have had taxes withheld despite their total income being below the filing threshold.

Gathering Necessary Information for Filing

Before a minor’s tax return can be prepared, specific information and documents must be gathered. The minor’s Social Security Number (SSN) is important, as it uniquely identifies the taxpayer to the IRS. Without an SSN, a tax return cannot be accurately filed.

For employment income, a minor will receive a Form W-2 from their employer by January 31st of the year following the tax year. This form reports the total wages earned (Box 1) and federal income tax withheld (Box 2), along with Social Security and Medicare wages and taxes. If a minor earned interest income, they will receive a Form 1099-INT. This form details the taxable interest received in Box 1 and any federal tax withheld in Box 4.

For dividend income, a Form 1099-DIV is issued. This form includes ordinary dividends (Box 1a) and qualified dividends (Box 1b). These documents are sent by the employer, bank, or brokerage firm.

How a Minor Files a Tax Return

Once all the necessary income statements and personal information are collected, the process of completing and submitting the tax return can begin. The primary form used for filing individual income tax returns, including those for minors, is Form 1040. Information from documents like Form W-2, Form 1099-INT, and Form 1099-DIV is transferred to the appropriate lines on Form 1040.

Minors have several options for filing their tax returns. They can prepare and mail a paper return directly to the IRS. Alternatively, e-filing through tax software or with the assistance of a tax professional offers a convenient and faster method for submission. After the return is submitted, whether by mail or electronically, the minor can expect to receive a confirmation of filing or, if eligible, a tax refund.

Parental Role in a Minor’s Taxes

Parents often play a significant role in managing their minor child’s tax obligations. If a minor child cannot sign their own tax return due to age or other reasons, a parent or legal guardian must sign it on their behalf. The signature should include the child’s name, followed by the parent’s signature and a phrase such as “By (signature), parent (or guardian) for minor child.” This designation clarifies the relationship and authority.

The “kiddie tax” is a specific rule that can affect a minor’s unearned income. This rule aims to prevent parents from shifting investment income to children to take advantage of lower tax rates. For the 2024 tax year, if a child’s unearned income exceeds $2,600, the amount above this threshold may be taxed at the parent’s marginal tax rate, rather than the child’s lower rate. This rule applies to children under age 19, or under age 24 if they are a full-time student.

Parents may report their child’s interest and dividend income on their own tax return instead of the child filing a separate return. This can be done by completing and attaching Form 8814 to their Form 1040. This election is available if the child’s only income is from interest and dividends, and their gross income is below a certain amount. While it can simplify filing, reporting the child’s income on the parent’s return might result in a higher overall tax liability for the family, as the income could be taxed at the parent’s higher rate.